High customer satisfaction for motor repairs

Each month, we handle about 550 repairs of motor cars at our quality workshop. The repars are arranged by us through a tender. Here is the satisfaction rate:

Service by claim officer    96%   
Service by IDAC             96%  
Service of workshop         93%   
Quality of repair           93%           
Promptness of repair        95%

There is a high satisfaction rate (more than 90%) given by our customers.

By arranging the repair, we are able to bring down the repair cost by about 20% and to reduce our premium rate. We are able to get high customer satisfaction.

Bank customer is unhappy with a structured deposit

FROM A BANK CUSTOMER

Dear Mr Tan

I would like to share with you my agony and appreciate your advice.

In May 2004, I was persuaded to purchase a product named interest rate-linked structured deposit (5 years) by a local bank.

Barrier range of interest using 6 mth-SGD-SOR rated compiled by the Assn of Banks in Singapore.

Around Mar 2005, I was told the bank wanted to terminate the fund. It will start a new fund, adjusting the Barrier interest rate to 3.25 reason. The bank expected interest to go up.

The other terms and condition remain the same as the earlier deposit. I was also assured that it is unlikely to have zero payment and is a very safe product.

This year, my second quarter payment indicate that the interest is zero. I queried the officer and was told because the interest rate has shoot above the 3.25 barrier.

When I asked to withdraw the product, I was shocked that I had to pay a penalty of 10% to the bank.

The officer assured me the bank will try to close the fund when the interest rate comes down as it is too expensive for them to replace the fund now.

I felt so confused as in the cover letter the Pre-matured withdrawal Fee states:

"If a depositor wants to pre-maturely withdraw the deposit, it can only be done on a monthly basis and customer must pay a pre-mature withdrawal Fee, derived as the cost of replacing the above deposit at market rates for such tenor. A minimum of 1% will be imposed if such pre-matured withdrawal is made within the first 6 months. "

At that time, the officer told me that the pre-mature withdrawal fee is 1%. Now I was told is 10% (ie $7,000 plus penalty for my $50,000 structured deposit.)

The bank can terminate the fund early without penalty. When customer wants to terminated, the cusotmer has to pay l0% penalty, and not l% as mentioned early withdrawal fee and informed by the officer.

I bought this product earlier because I was told that it is like a fixed deposit, is very safe, and is not linked to any equities or currency. I would appreciate if you can enlighten me on this matter.

REPLY

I suggest that you write to the CEO of the bank and raise the facts as you have presented. Ask the CEO to explain why the penalty is 10% and why there is no interest payment. It is the bank's duty to explain the product to the customer.

Wheel cramp - release fee $100

I saw a sign next to a building: "Illegally parked vehicle will be wheel-clamped. Release fee $100".

Does the owner of the building have the right to do this? Is the fee reasonable or exorbitant? Can the owner charge $500?

Key features of Flexi Cash

Earn a better interest rate on your savings account!

Do you want to earn 3% on your savings? And have the flexibility to withdraw your money at any time?

Flexi Cash from NTUC Income is a better choice:

- this is an investment-linked plan
- your saving is invested in the money market
- the interest rate is currently around 3% (but may be subject to change with the market)
- minimum saving of $5,000
- saving is subject to a very small investment charge of 0.1% (during the promtion period)
- no restriction on withdrawal
Interested? Call 6788 1111

High cost of education

Some financial planners alarm parents about the high cost of education.

For example, the cost of getting a basic degree is:

              Today     15 yrs    Monthly     
                         Later    saving
Singapore    $40,000    $72,000     $250
Australia    $160,000  $288,000   $1,000
USA          $280,000  $504,000   $1,750
UK           $270,000  $486,000   $1,700

Assume cost increase by 4% per year for all countries. Estimates based on 4 year course, except for Australia (3 years). Cost for overseas education includes tuition fees and living expenses.

Assuming an investment return of 6% per annum (not guaranteed), the parent has to save between $250 to $1,750 a month.

That is a lot of money.

Fortunately, most students enjoy a subsidy (if they go to a university in Singapore) or if they qualify for a scholarship in a foreign university. Some of them work to pay for their expenses.

Still, it is useful for the parent to have some regular savings to provide part of the cost of their children's education.

I recommend a monthly saving of $100 to $300 per child. This depends on the financial means of the parents.

eNN: News about your neighbourhood

NTUC Income started the electronic newsletter a year ago.

100,000 subscribers now receive this e-newsletter free-of-charge twice a week, on Tuesdays and Fridays.

Our objective is to informs subscribers of special events in the neighbourhood and help to promote neighbourliness, local jobs and local businesses. It contains sales offers, services, announcements and much more.

We have divided Singapore into 20 neighbourhoods. I subscribe to Ang Mo Kio and Paya Lebar / East Coast neighbourhoods.

You can go to www.enn.com.sg to subscribe eNN of your own neighbourhood. Subscription is FREE.

Cross selling works wonders

Our consultant at the business center followed up on a customer who bought a low cost term insurance (i-term).

The consultant informed the customer about Enhanced Incomeshield. The customer is convinced about this plan. She took it for herself and her son. She is getting the whole family to join the plan.

Cross selling works wonders!

Customer likes our website

Dear sir,

Thank you for your prompt reply. I'm relieved I won't be rejected or loaded on renewal of our Incomeshield plan, should I get sick after getting insured.

I already read all the details provided in the website before submitting my application.

NTUC Income has my vote for the best website among all the insurers because it's easy to navigate and all the information is there, including the policy documents. This way, I know exactly what I'm buying, thanks.

97% prefer the lower premium

Under our quality plan, we carry out the repair as follows:

- if the damages involve the engine or integrity of the car, we will repair at the dealer's workshop

- for minor repair, we repair at our quality workshop and take over the warranty (if it is voided by the dealer).

Earlier this year, we provided an option for the owner to pay a 25% loading in the premium (for a car less than 3 years old), for the repairs to be done at the dealer's workshop, in all cases (including minor repairs).

Out of 3,000 cases that are eligible for this optional plan, only 3% are willing to pay the higher premium. The other 97% prefer the lower premium, and accept the standard package.

Lessons on market volatility

Three weeks ago, the FED chairman, Bernarke, made some comments about inflation in the USA. It caused the global stockmarkets to fall by 10% to 20%.

A few days ago, he made some positive comments. The global stockmarket recovered by 2% to 4%.

What are the lessons?

- the stockmarkets are volatile
- a long term investor can ignore the volatility
- the monetary authorities around the world want to have a robust stockmarket

Any conclusion? It is better to invest when the stockmarkets are down?

NTUC Income will support parallel importers of cars

NTUC Income will support parallel importers of cars in the following ways:

- get customers for them
- provide financing
- provide warranty, damage and liability insurance

We have made contacts with several parallel importers who are willing to bring in cars on the orders from our customers.

We hope to be able to save a few thousand dollars to car owners for the purchase of their cars, including COEs, and also on the cost of servicing their cars (as the general workshops are able to reduce the cost significantly).

Wait for further announcement.

Customer says: Thank you for insuring me!

FROM A CUSTOMER

Dear Mr Tan,

I always have difficulty getting health shield plans due to my medical conditions. That is until I tried applying for NTUC IncomeShield!

I thought I will go through rounds of medical examination again and the insurer will drag my case. But not with your company! I walked into your Tampines Business Centre on 29 May and received the policy document on 14 June 06. What promptness and efficiency!

I also thought loading will be imposed. Surprisingly, NTUC Income didn't! Very thankful for that. More than that, there are even vouchers given to me for taking up the policy!

I wish to commend your staff Ms Wendy Soong at the Tampines Business Centre as well. She answered my questions well. Insuring myself with NTUC Income has been a pleasant experience indeed.

Stockmarkets will recover

Compared to the peak a few weeks ago, the stockmarkets have fallen by 9% to 17% to the lows.

                                Peak    Low     %
Nikkei Japan                    17291  14218  -17.8%
STI, Singapore                   2660   2297  -13.6%
Nasdaq, USA                      2345   2072  -11.6%
Dow Jones, USA                  11642  10706   -8.0%

Many of these markets are now recovering. If you invest in the stockmarket now, you pay a much lower price than the recent peak.

----------------------------------

Is there a chance that it may go lower?

Yes, but it is a small chance. The worse case scenario was during September 1987. The stockmarket crashed by 19% over 2 months. However, the crash was temporary. Within 11 months, it fully recovered to the level before the crash.

Money market fund earns good return

Here is the return on our money market fund, net of expenses, during the past 12 months:

3 months to:
31 Aug 05      0.47%
31 Nov 05      0.45%
31 Feb 06      0.67%
31 May 06      0.74%

The interest rate has been increasing during the past year. The interest for the latest period is 0.74% for 3 months, or 2.96% per year.

Interest rate is likely to increase over the next few months. The return from the money market fund is likely to exceed 3% (but not guaranteed).

Bonus Cut and Restoration

A policyholder complained that his insurer (not NTUC Income) cut bonuses on all insurance policies in bad times but restored them selectively in good times.

He had two endowment policies outstanding with the company. The bonuses were cut in 1999 and have not been restored since then and the terminal bonus is still in suspension.

According to him, the insurer "was trigger happy to cut bonus rates on its policies during bad times, but during good or better times, restoration was applicable only to policies that matured in certain years. Why was restoration of bonus rates not accorded to all its policies in the same spirit as during the reduction exercise?"

Customer is happy with business center

A customer visited our Business Centre to ask about motor insurance. Our insurance consultant attended to her.

Our premiums are slightly lower than the current insurer. In particular, she liked our convenient operating hours which is until 6:30pm.

She was very pleased with our service. She SMS to say, "Many thanks. This is truly customer service!"

A buying opportunity?

The market correction has been more severe than I had expected.

The Japan market has dropped by 20% from its peak. The Singapore market dropped by about 15%. The US market dropped by about 10%.

The combined fund (growth) from NTUC Income probably dropped by about 7% to 10%. It dropped less than the other markets, due to a 30% component invested in bonds.

Here is the good news for long term investors. You have the chance to invest now, at a much lower price. And benefit from the long term appreciation of the investment funds.

I have an additional $100,000 to be invested. I shall be deciding within the next two weeks.

Additional cover for renting a car overseas

If you rent a car for driving overseas, you may be required to pay up an additional $20 a day for the additional third party cover (over and above the basic cover provided in the basic rental). This is quite high.

If you are insured with NTUC Income and have NCD of 20% or more, you can get this additional cover at a 50% discount from us. You can save $10 per day.

Call 6332 3456. More details can be found in our website.

Are pre-existing conditions excluded?

QUESTION

I am a civil servant. I have been covered under CPF Medishield since its introduction. I did not opt out from Medishield, even through I am covered for medical benefits by the civil service.

I attended your educational talk and wish to move to IncomeShield for better coverage. But I am afraid that any pre-existing illness will not be covered under IncomeShield. What is your advice

REPLY

If you wish to know whether you can be covered under Incomeshield, all you have to do is put in an application. It cost you nothing.

If there is any exclusion for pre-existing conditions, we will ask for your agreement. The exclusion, if any, will be endorsed on your policy.

If your pre-existing conditions are properly disclosed to us and are not endorsed as exclusion, you will be covered.

When you opt for Incomeshield, you will continue to be covered by Medishield for all your pre-existing conditions.

Approved: 8 cases of reverse mortgage on HDB flats

We have approved 8 cases of reverse mortgage on HDB flats during the past 3 months for a total of $657,000. The average loan is $82,000, to be withdrawn in monthly installment over the loan period (of up to 20 years).

Another 4 cases are being processed.

We received many enquiries, but the number of applications is still small at this time.